Lightspeed Commerce Inc.'s board chair says the company's strategic review revealed a "high level of interest" in the tech firm, but the business "unanimously" concluded it should stay its course.
That means the Montreal-based purveyor of payments software will remain publicly traded and stick with its focus on growing its North American retail and European hospitality businesses.
That plan "offers the best available path to maximize value for the company and its shareholders," Patrick Pichette said in a statement released Thursday.
Lightspeed launched the review, which prompted speculation of a possible sale of the firm, last year after founder Dax Dasilva returned to lead the company and return it to profitability.
Dasilva wouldn't say much Thursday about any offers Lightspeed may have garnered.
"We're not going into the details of the process, unfortunately, but yes, we had strong engagement and we did have extensive discussions with several participants in the process," he told analysts.
"Ultimately we determined and concluded that the best way to drive maximum shareholder value is to continue as a public company and execute our transformation plan in that context."
The end of the review and the company's release of its third-quarter results sent Lightspeed's share price tumbling by 15 per cent to $17.55 in early afternoon trading.
Both pieces of news came as Dasilva nears the one-year anniversary of his return to the company. The Lightspeed founder handed off the top job to JP Chauvet in February 2022 but returned to the CEO role on an interim basis in February 2024.
Dasilva was reappointed on a permanent basis in May.
Much of his work since then has been focused on finding cost efficiencies and appeasing shareholders.
He announced Thursday that the company would use a buyback program to return up to $400 million in cash to shareholders.
The move comes after Lightspeed cut about 200 jobs in December and about 280 jobs in April, when it shifted its sales summit from an in-person format to a virtual event and decreased the number of days staff work from the office to reduce bills associated with feeding employees.
Yet the company, which keeps its books in U.S. dollars, said Thursday that it experienced a loss of US$26.6 million or 17 cents US per share for the quarter ended Dec. 31. The result compared with a loss of US$40.2 million or 26 cents US per share a year earlier.
Revenue for what was the company's third quarter totalled US$280.1 million, up from US$239.7 million a year ago.
On an adjusted basis, Lightspeed says it earned 12 cents US per share in its latest quarter compared with an adjusted profit of eight cents US per share a year earlier.
The quarter covers a period when the company was deep into its five-month strategic review.
The process looked at the company's portfolio but also its market attractiveness and competitive dynamics, Dasilva said.
He added the review had no "presupposed outcome."
"We wanted to know what were the options available (and) what were the different alternatives, but the object is how can we best execute the transformation plan and drive the most value?" he told analysts.
"After assessing multiple options, we concluded with our board that continuing as a public company offers the best path to maximizing value."
This report by The Canadian Press was first published Feb. 6, 2025.
Companies in this story: (TSX:LSPD)
Tara Deschamps, The Canadian Press